HAL Q1 Results: Defence stock at day's low ahead of earnings announcement

Shares of Hindustan Aeronautics Ltd. (HAL) are trading at the lows of the day on Tuesday, August 12, ahead of the defence PSUs June quarter earnings announcement.

As per a CNBC-TV18 poll, the company's revenue is likely to increase by 13% from last year to ₹4,898 crore, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to increase by 12% from the same quarter last year to ₹1,114 crore.

HAL's revenue growth is likely to be driven by execution of ₹1.89 lakh crore worth of order book and a higher contribution of repairs and overhaul (ROH).

EBITDA margin though is likely to decline by 11 basis points from the same quarter last year to 22.75%, while its profitability may take a 15% hit from the year-ago period to ₹1,218 core, aided by higher other income.

These are some of the key factors to watch ahead of HAL's results:

Here's what HAL had guided for financial year 2026 earlier:

Order book target to be between ₹2.5 lakh crore to ₹2.6 lakh crore
Revenue growth to be between 8% and 10% and this guidance will be revisited after the first half
The management is also anticipating double-digit revenue from next year onwards but it may happen this year itself.
Adjusted EBITDA margin to remain at 31% over the next three to four years
12 LCA Mk1A aircraft expected to be delivered this year.

Shares of HAL are trading 2.6% lower ahead of the earnings announcement at ₹4,33.1. The stock has declined 11.5% in the last one month.